https://www.miningweekly.com
Africa|Construction|Gold|Indaba|Industrial|Mining|PROJECT|Resources|Water|Operations
Africa|Construction|Gold|Indaba|Industrial|Mining|PROJECT|Resources|Water|Operations
africa|construction|gold|indaba|industrial|mining|project|resources|water|operations

Witwatersrand basin project – Qala Shallows Phase 1 – South Africa – update

Pic of locations of the WBP site deposits

Photo by West Wits Mining

1st March 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

Font size: - +

Name of the Project
Witwatersrand basin project (WBP) – Qala Shallows Phase 1.

Location
At the northern edge of the Witwatersrand basin, in the Central Rand goldfield, south-west of the City of Johannesburg, in Gauteng, South Africa.

Project Owner/s
West Wits Mining.

Project Description
Qala Shallows forms part of the WBP.

The updated results of the definitive feasibility study (DFS) have further enhanced the project’s promising outlook. The project has contained ore estimated at 1.01-million ounces.

The two Kimberley reefs – K9A and K9B – will be processed during the life of the project.

The Kimberley reef ore produced will be treated at an existing nearby plant on a toll treatment basis. A toll treatment agreement has been signed with the Ezulwini process plant facility and all ore produced will be truck-hauled to this plant, which uses the carbon-in-pulp process for gold recovery.

The updated DFS envisages production of 10.1-million run-of-mine tonnes, compared with 7.6-million in the DFS. Maximum production has increased from 699 000 t/y in the DFS to 839 000 t/y in the updated DFS, for overall production of 924 000 oz from 688 000 oz.

Steady state production is estimated at 70 000 oz/y.

The mining method has been left unchanged from that used in the 2022 DFS. The only difference between the mining plans relates to mining sequence and timing.

The updated DFS has determined that conventional breast mining in an underhand configuration is the optimal method for the deposit.

Life-of-mine (LoM), from construction to relinquishment, has increased from 15.7 years to 17.7 years.

Potential Job Creation
The project is expected to generate about 1 000 jobs over 18 years.

Net Present Value/Internal Rate of Return
The updated DFS has a pretax net present value (NPV), at a 7.5% discount rate, of $367-million and an internal rate of return (IRR) of 38%, with a payback of five years, compared with an NPV of $180-million and a payback of 4.1 years, in the August 2022 DFS. The IRR remains the same.

Capital Expenditure
Peak funding has decreased from $63-million in the August 2022 DFS to $54-million in the June 2023 updated DFS.

Planned Start/End Date
Phase 1 is expected to be completed in 2026.

Latest Developments
South African development finance institution the Industrial Development Corporation (IDC) has started work to complete its due diligence investigation as part of its proposed R300-million debt facility to fund development capital for the project.

“I am confident the significant work our team has done to demonstrate the project’s robust economics and technical merit will ensure a successful outcome for this due diligence programme,” West Wits chairperson Michael Quinert has said.

The IDC’s initiation of work to complete the due diligence investigation was motivated by the progress West Wits has made in identifying other potential sources to meet funding requirements, including a previously announced $10-million debt facility from Wingfield Partners, as well as advanced proposals from other third parties, the company has indicated.

Subject to the successful completion of due diligence, the IDC will approach its executive credit committee for approval of final terms and conditions.

The positive completion of the due diligence is essential for finalising funding terms, mobilising resources and initiating operations.

Concurrently with the IDC's review, West Wits is advancing discussions with other funding sources, finalising proposed terms with parties at advanced negotiation stages, and engaging with various investors following the company’s participation in the recent Investing in African Mining Indaba conference in Cape Town, South Africa.

Key Contracts, Suppliers and Consultants
Calgro M3 (secure potable water supply for the mine).

Contact Details for Project Information
West Wits Mining, tel +61 3 8692 9049 or email info@westwitsmining.com.

Edited by Creamer Media Reporter

Comments

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.098 0.152s - 92pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: